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Sunday, April 16, 2017

15/4/17: Swift & Digital Money: Cybersecurity Questions

Swift, the interbank clearance system, has been the Constantinople of the financial world's fortresses for some time now. Last year, writing in the International Banker (see link here), I referenced one cybersecurity incident that involved Swift-linked banks, and came close to Swift itself, although it did not breach Swift own systems. The response from Swift was prompt, pointing out that there has never been a cybersecurity breach at Swift.

From financial services and economy perspective, this is huge. Take a macro view: for years we have been told that cash and physical gold and silver are not safe. And for years this argument has been juxtaposed by the alleged 'safety' of digital money (not the Bitcoin and other cryptos, which the Governments loath and are keen on declaring 'unsafe', but state-run Central-Banks-operated digital money). The very notion of e-finance or digital finance rests on the basic tenet of infallibility of Swift. That infallibility is now gone. Welcome to the brave new world where the Governments promise you safe digital money in exchange for privacy and liquidity, while delivering a holes-ridden dingy of a system that can and will be fully compromised by the various states' actors and private hackers.

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This blog represents my personal views and is not reflective of the views or opinions held by any company, contractor, client or employer I work for currently or have worked for in the past. These views are not an endorsement to take any action in the markets or of any political position, figures or parties.

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